When there are efficiency spillovers, we can use a spatial autoregressive stochastic frontier model to estimate total (spillover-corrected) efficiencies. Glass et al. (2016) ( Journal of Econometrics ) provide a formula for total efficiency in this context, which is an approximation. We provide...

It is well known that when the empirical skewness of the OLS residuals display the opposite sign of what is expected from the stochastic frontier model, maximum likelihood estimation will be equivalent to OLS and no inefficiency will be recovered. A variety of approaches to operate in this...

This paper develops a novel method to estimate production functions. Earlier papers rely on special assumptions about the functional form of production functions. Our approach efficiently estimates all parameters of any production functions with Hicks-neutral productivity without additional...